HDFC Bank Gains 1.27%: 6 Key Factors Driving This Week’s Mixed Momentum

2 February: High-Value Trading Amid Bearish Technical Momentum

HDFC Bank began the week with significant trading activity, registering a traded volume of 59.35 lakh shares and a turnover exceeding ₹546.57 crores. Despite this liquidity, the stock closed at Rs.927.30, down 0.22% from the previous close, underperforming the Sensex’s 1.03% decline. Technical indicators signalled bearish momentum as the stock traded below all major moving averages, including the 5-day, 20-day, and 50-day averages, reflecting short- to medium-term downward pressure.

Investor participation weakened, with delivery volumes falling 12.71% below the five-day average, suggesting reduced long-term holding interest. The MarketsMOJO rating downgraded the stock to Sell on 28 January, reflecting concerns over technical weakness despite the bank’s large market capitalisation of approximately ₹14.16 lakh crores.

3 February: Exceptional Volume and Short-Term Bullish Momentum

The following day saw a sharp rebound, with HDFC Bank’s stock price surging 2.28% to Rs.948.40, supported by a 1.06 crore share volume and a traded value of ₹2,68,034.87 lakhs. The stock opened with a 6% gap-up and reached an intraday high of Rs.994.00, reflecting strong buying interest. This short-term bullish momentum was confirmed by the stock trading above its 5-day and 20-day moving averages, although it remained below longer-term averages.

Despite the strong volume, delivery volumes declined 23.3% compared to the five-day average, indicating a shift towards speculative or intraday trading rather than accumulation. The MarketsMOJO Mojo Score remained at 48.0 with a Sell rating, underscoring the mixed technical and fundamental outlook.

4 February: Upgrade to Hold as Technicals Improve and Institutional Interest Rises

On 4 February, HDFC Bank’s technical outlook improved, prompting MarketsMOJO to upgrade its Mojo Grade from Sell to Hold with a score of 54.0. The stock closed at Rs.952.00, up 0.21%, supported by a traded volume of over 53 lakh shares and a turnover exceeding ₹5,065 crores. Delivery volumes surged 46.87% above the five-day average, signalling renewed institutional confidence and longer-term holding interest.

Technically, the stock traded above its 5-day and 20-day moving averages, indicating short-term bullish momentum, though it remained below longer-term averages. Fundamental metrics remained stable, with a healthy Capital Adequacy Ratio of 17.29% and consistent earnings growth, supporting the rating upgrade despite recent flat financial performance.

5 February: High-Value Trading Amid Mixed Market Sentiment

HDFC Bank continued to attract high-value trading on 5 February, with a turnover of ₹452.10 crores and volume of 47.5 lakh shares. The stock closed slightly lower at Rs.949.50, down 0.41%, reversing the prior three-day gain streak. Despite the dip, the stock marginally outperformed the Sensex’s 0.53% decline and the private sector banking sector’s 0.37% fall.

Delivery volumes declined 24.07% relative to the five-day average, indicating reduced long-term investor commitment. The stock maintained its position above short-term moving averages but remained below the 50-day and longer-term averages, reflecting a cautious technical stance amid mixed market sentiment.

6 February: Narrow Price Range with High Turnover and Institutional Caution

The week closed on 6 February with HDFC Bank trading within a narrow range, closing at Rs.941.15, down 0.88% on the day but still up 1.27% for the week. The stock recorded a traded volume of 37.25 lakh shares and a turnover of ₹351.62 crores, ranking among the most actively traded stocks by value. Despite this liquidity, delivery volumes declined 3.84% relative to the five-day average, indicating waning institutional conviction.

Technically, the stock remained above its 5-day and 20-day moving averages but below the 50-day and longer-term averages, reflecting a consolidation phase amid mixed momentum. The MarketsMOJO Hold rating and Mojo Score of 54.0 suggest a balanced outlook, with investors advised to monitor key technical levels and institutional buying patterns for clearer directional cues.

Key Takeaways

Positive Signals: The week saw strong liquidity and high-value trading, with institutional interest notably rising on 4 February as delivery volumes surged. The upgrade to a Hold rating by MarketsMOJO reflects improving technical momentum and stable fundamentals, including a robust Capital Adequacy Ratio and consistent earnings growth. Short-term moving averages provided support, and the stock outperformed the Sensex over the week.

Cautionary Signals: Despite the weekly gain, HDFC Bank underperformed the Sensex by 0.24%. Delivery volumes showed volatility, with declines on key days indicating fluctuating investor conviction. The stock remains below longer-term moving averages, signalling medium- to long-term technical resistance. The recent downgrade to Sell prior to the upgrade and mixed momentum indicators suggest ongoing uncertainty. Narrow price ranges and declining delivery participation towards week-end point to consolidation and cautious investor sentiment.

Conclusion

HDFC Bank Ltd’s performance in the week ending 6 February 2026 was characterised by a delicate balance between resilience and caution. The stock demonstrated robust trading volumes and institutional interest, supported by an upgrade to a Hold rating reflecting improved technical and fundamental conditions. However, mixed momentum signals and subdued delivery volumes highlight the need for vigilance amid ongoing market volatility and sectoral challenges.

Investors should monitor key technical levels, particularly the 50-day moving average, and watch for sustained increases in delivery volumes as indicators of renewed confidence. The bank’s large-cap status and systemic importance make it a bellwether for private sector banking, but the current environment suggests a measured approach is prudent until clearer directional cues emerge.

Upgrade at special rates, valid only for the next few days. Claim Your Special Rate →